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Conventional Loans in Colusa
Colusa's housing market favors conventional financing. Most properties fall well below conforming loan limits, giving you access to the best rates.
Local inventory moves steadily. Sellers here prefer clean conventional approvals over government loans that require property condition fixes.
Conventional loans close faster than FHA or USDA in rural markets. That speed matters when you're competing for homes in a small pool.
You need 620 credit minimum, but 740+ unlocks the lowest rates. Most Colusa borrowers we close sit in the 680-720 range.
Down payments start at 3% for first-time buyers. Put down 20% to skip PMI and cut your monthly payment significantly.
Debt-to-income can't exceed 50% in most cases. Your total housing payment plus car loans and credit cards must stay below half your gross income.
Two years of stable employment matters. Self-employed borrowers need two years of tax returns showing consistent income.
Not all lenders price rural California the same. Some add overlays for Colusa County that increase your rate or require higher credit scores.
We shop your scenario across 200+ wholesale lenders. Credit unions often compete well here, but correspondent lenders frequently beat them on rate.
Appraisal timelines run 2-3 weeks in Colusa. Limited local appraisers mean you can't rush this step, so factor that into your closing timeline.
Most Colusa buyers overestimate how much credit score matters beyond 740. Going from 760 to 800 doesn't change your rate — save that energy for increasing your down payment.
PMI costs less than most borrowers think. Paying 10% down with PMI often beats draining savings to hit 20%, especially with rates below 7%.
Rural property types can trip up conventional approvals. If you're buying acreage or a home with outbuildings, tell your broker early — some lenders restrict agricultural features.
Rate locks matter in small markets. Colusa doesn't have daily rate competition like Sacramento, so locking when rates dip protects you from sudden increases.
FHA allows 580 credit with 3.5% down, but you'll pay higher monthly MI that never drops off on minimum down payment loans. Conventional PMI cancels at 78% loan-to-value.
Jumbo loans apply above $806,500 in Colusa County for 2025. Almost no local properties hit that threshold, so conventional conforming gives you better pricing.
USDA loans offer zero down in Colusa, but income limits exclude many buyers and closing takes 45+ days. Conventional closes in 25-30 days with predictable underwriting.
Well and septic properties dominate outside town limits. Conventional lenders require well water tests and septic inspections — budget $600-800 for these.
Flood zone properties exist near the Sacramento River. Lenders require flood insurance, which can add $800-2000 annually depending on your zone designation.
Colusa's small builder inventory means you're likely buying resale. Conventional loans handle older homes better than FHA, which flags peeling paint and minor repairs.
Agricultural zoning appears frequently. If the property allows farming or livestock, some lenders classify it as rural residential and adjust pricing or deny the loan entirely.
Minimum is 620, but 740+ gets you the best rates. Most local buyers we work with have scores between 680-720 and still access competitive pricing.
Yes, but lenders restrict acreage over 10 acres or properties with significant agricultural use. Disclose land size and any farming features upfront to avoid delays.
3% minimum for first-time buyers, but 20% eliminates PMI. Most Colusa buyers put down 10-15% to balance manageable payments with lower PMI costs.
Yes, conventional loans handle older properties better than FHA. Minor cosmetic issues won't kill the deal, though major structural problems still require repairs before closing.
Expect 25-30 days total. Appraisals take 2-3 weeks locally due to limited appraisers, so that's usually the longest step in your timeline.
Yes, PMI cancels automatically when you reach 78% loan-to-value through payments. You can request removal at 80% if your home has appreciated and you get a new appraisal.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.